<PAGE>
CENTRAL OHIO COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 22770
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
CONTENTS
Page
Statements of Income 1
Balance Sheets 2-3
Statements of Retained Earnings 4
Statements of Cost of Commercial Coal Sold and Shipped 5
Analysis of Operating Reserves and Deferred Credits 6
Information Concerning Capital Improvements 7
Analysis of Mining Plant in Service 8
Information Concerning Operations 9
Statements of Cost of Operation 10
Schedule of Changes in Coal Inventory 11
Construction Expenditure Budget - 1994 12
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<TABLE>
CENTRAL OHIO COAL COMPANY
STATEMENTS OF INCOME
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
October 31, November 30, December 31, December 31,
1993 1993 1993 1993
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Sales to Parent . . . . . . . . $11,694 $9,865 $7,575 $29,134
COST OF OPERATION (including
Depreciation, Depletion and
Amortization of Mining Plant of
$169,000 in October and $164,000
in November and $159,000
in December). . . . . . . . . . 11,482 9,682 7,384 28,548
OPERATING INCOME. . . . . . . . . 212 183 191 586
NONOPERATING INCOME (LOSS). . . . 84 96 (16) 164
INCOME BEFORE INTEREST CHARGES. . 296 279 175 750
INTEREST CHARGES -
(including $4,000 each in
October, November and December
on long-term debt to
Parent Company). . . . . . . . 8 5 5 18
INCOME BEFORE FEDERAL
INCOME TAXES. . . . . . . . . . 288 274 170 732
FEDERAL INCOME TAX
EXPENSE (CREDIT). . . . . . . . 67 53 (51) 69
NET INCOME. . . . . . . . . . . . $ 221 $ 221 $ 221 $ 663
The common stock of the Company is
wholly owned by Ohio Power Company.
</TABLE>
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CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
October 31, November 30, December 31,
1993 1993 1993
(in thousands)
ASSETS
<S> <C> <C> <C>
MINING PLANT:
Mining Plant in Service . . . . . . . . . . . . $84,742 $83,976 $84,004
Construction Work in Progress . . . . . . . . . 64 63 244
Total Mining Plant . . . . . . . . . . . 84,806 84,039 84,248
Accumulated Depreciation and Amortization . . . 51,881 51,638 52,091
NET MINING PLANT . . . . . . . . . . . . 32,925 32,401 32,157
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . . 6,269 11,669 11,652
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . . 459 693 459
Affiliated Companies. . . . . . . . . . . . . 7,864 6,613 2,869
Coal. . . . . . . . . . . . . . . . . . . . . . 1,916 2,695 2,893
Materials and Supplies. . . . . . . . . . . . . 10,878 10,886 10,816
Other . . . . . . . . . . . . . . . . . . . . . 1,627 1,346 1,379
TOTAL CURRENT ASSETS . . . . . . . . . . 29,013 33,902 30,068
FEDERAL INCOME TAXES. . . . . . . . . . . . . . . 4,421 4,484 4,965
REGULATORY ASSETS:
Amounts Due From Customer For Future
Federal Income Taxes. . . . . . . . . . . . . 4,073 4,037 4,118
Mining Cost Normalization . . . . . . . . . . . 3,381 - -
Other . . . . . . . . . . . . . . . . . . . . . 1,940 1,696 1,422
TOTAL REGULATORY ASSETS. . . . . . . . . 9,394 5,733 5,540
TOTAL. . . . . . . . . . . . . . . . . $75,753 $76,520 $72,730
</TABLE>
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<TABLE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
October 31, November 30, December 31,
1993 1993 1993
(in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
SHAREOWNER'S EQUITY:
Common Stock - Par Value $100:
Authorized - 100,000 Shares
Outstanding - 69,000 Shares . . . . . . . . . $ 6,900 $ 6,900 $ 6,900
Paid-in Capital . . . . . . . . . . . . . . . . 13,069 13,069 13,069
Retained Earnings . . . . . . . . . . . . . . . 568 789 347
TOTAL SHAREOWNER'S EQUITY. . . . . . . . 20,537 20,758 20,316
LONG-TERM DEBT - to Parent Company. . . . . . . . 1,500 1,500 1,500
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . . 10,934 10,702 10,470
Operating Reserves. . . . . . . . . . . . . . . 10,365 10,714 9,083
TOTAL OTHER NONCURRENT LIABILITIES . . . 21,299 21,416 19,553
CURRENT LIABILITIES:
Accounts Payable:
General . . . . . . . . . . . . . . . . . . . 1,953 1,710 1,880
Affiliated Companies. . . . . . . . . . . . . 672 574 644
Accrued Reclamation Costs . . . . . . . . . . . 6,650 6,305 7,616
Accrued Vacation Pay. . . . . . . . . . . . . . 1,595 1,575 829
Accrued Rent. . . . . . . . . . . . . . . . . . 1,810 2,553 328
Obligations Under Capital Leases. . . . . . . . 3,562 3,466 3,373
Accrued Other Postretirement Benefits . . . . . 3,469 3,616 3,941
Other . . . . . . . . . . . . . . . . . . . . . 4,691 4,768 4,791
TOTAL CURRENT LIABILITIES. . . . . . . . 24,402 24,567 23,402
DEFERRED CREDITS. . . . . . . . . . . . . . . . . 8,015 8,279 7,959
TOTAL. . . . . . . . . . . . . . . . . $75,753 $76,520 $72,730
</TABLE>
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF RETAINED EARNINGS
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
October 31, November 30, December 31, December 31,
1993 1993 1993 1993
(in thousands)
<S> <C> <C> <C> <C>
BALANCE AT BEGINNING OF PERIOD. . $347 $568 $789 $347
NET INCOME. . . . . . . . . . . . 221 221 221 663
CASH DIVIDENDS DECLARED . . . . . - - 663 663
BALANCE AT END OF PERIOD. . . . . $568 $789 $347 $347
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CENTRAL OHIO COAL COMPANY
STATEMENTS OF COST OF COMMERCIAL COAL SOLD AND SHIPPED
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
October November December
1993 1993 1993
(in thousands, except as noted)
<S> <C> <C> <C>
I. Calculation of Cost-of-Capital Compensation:
A. Equity Investment at Beginning of Month:
Common Stock. . . . . . . . . . . . . . . . . . . . . . . . $ 6,900 $ 6,900 $ 6,900
Paid-in Capital (excluding item D and item G) . . . . . . . 450 450 450
7,350 7,350 7,350
B. Rate of Return Allowable per HCAR No. 22770:
14.34% per annum, 1.195% per month. . . . . . . . . . . . . .01195 .01195 .01195
C. Earnings Allowable: (re investment in item A)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 88 $ 88 $ 88
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 880 $ 968 $ 1,056
D. Equity Investment - January 1983 (Preparation Plant). . . . . $ 6,431 $ 6,431 $ 6,431
E. Rate of Return Allowable per HCAR No. 22770:
13.01% per annum, 1.0842% per month . . . . . . . . . . . . .010842 .010842 .010842
F. Earnings Allowable: (re investment in item D)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 70 $ 70 $ 70
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 700 $ 770 $ 840
G. Equity Investment - January 1983 (Other Assets) . . . . . . . $ 6,188 $ 6,188 $ 6,188
H. Rate of Return Allowable per HCAR No. 22770:
12.37% per annum, 1.0308% per month . . . . . . . . . . . . .010308 .010308 .010308
I. Earnings Allowable: (re investment in item G)
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 63 $ 63 $ 63
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 634 $ 697 $ 760
J. Total Earnings Allowable:
1. Current Month (C.1. + F.1. + I.1.) . . . . . . . . . . . $ 221 $ 221 $ 221
2. Year-to-Date (C.2. + F.2. + I.2.). . . . . . . . . . . . $ 2,214 $ 2,435 $ 2,656
K. Net Income per Statements of Income . . . . . . . . . . . . . $ 221 $ 221 $ 221
Add: Interest Charges . . . . . . . . . . . . . . . . . . . 8 5 5
Less: Nonoperating Income . . . . . . . . . . . . . . . . . 84 96 (16)
L. Applied Cost-of-Capital Billing Adder:
1. Current Month. . . . . . . . . . . . . . . . . . . . . . $ 145 $ 130 $ 242
2. Year-to-Date . . . . . . . . . . . . . . . . . . . . . . $ 1,321 $ 1,451 $ 1,693
II. Monthly Billing Calculation:
A. Total Operating Expenses (a). . . . . . . . . . . . . . . . . $ 11,549 $ 9,735 $ 7,333
B. Add: Monthly Cost-of-Capital Billing
Adder as Applied per L. 1. of Section I . . . . . . . . . . 145 130 242
C. Cost Applicable to Current Month Coal Billings (b). . . . . . $ 11,694 $ 9,865 $ 7,575
D. Coal Sold and Shipped in Current Month (in tons)(b) . . . . . 252,106 205,091 159,244
E. Average Price per Ton (in dollars) (C/D)(b) . . . . . . . . . $46.39 $48.10 $47.57
(a) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statements of Income.
(b) Sales were to the Parent Company - Ohio Power Company for the Muskingum River Plant.
/TABLE
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CENTRAL OHIO COAL COMPANY
ANALYSIS OF OPERATING RESERVES AND DEFERRED CREDITS
BY MONTH-END, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
October 31, November 30, December 31,
1993 1993 1993
(in thousands)
<S> <C> <C> <C>
Operating Reserves:
Accrued Reclamation Costs . . . . . . . . . . . $ 9,981 $10,373 $8,732
Public Liability Insurance. . . . . . . . . . . 20 20 20
Workers' Compensation . . . . . . . . . . . . . 364 321 331
Total Operating Reserves. . . . . . . . . . $10,365 $10,714 $9,083
Deferred Credits:
Gain on Sale and Leaseback of Plant . . . . . . $7,999 $7,950 $7,901
Mining Cost Normalization . . . . . . . . . . . - 154 -
Other . . . . . . . . . . . . . . . . . . . . . 16 175 58
Total Deferred Credits. . . . . . . . . . . $8,015 $8,279 $7,959
</TABLE>
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED DECEMBER 31, 1993
There were no significant changes with regard to the Company's mining
plant during the quarter.
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CENTRAL OHIO COAL COMPANY
ANALYSIS OF MINING PLANT IN SERVICE
AND RELATED ACCUMULATED PROVISIONS FOR
DEPRECIATION AND AMORTIZATION
BY MONTH-END, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
October 31, 1993 November 30, 1993 December 31, 1993
Net Net
Gross Accumulated Carrying Gross Accumulated Carrying Gross Accumulated Carrying
Cost Provisions Amount Cost Provisions Amount Cost Provisions Amount
(in thousands)
Description
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Surface Lands. . . . . . . $ 324 $ - $ 324 $ 324 $ - $ 324 $ 324 $ - $ 324
Mining Structures
and Equipment. . . . . . 71,591 49,403 22,188 70,844 49,154 21,690 70,827 49,601 21,226
Coal Interests
(net of depletion) . . . 9,904 - 9,904 9,885 - 9,885 9,870 - 9,870
Mine Development Costs . . 2,923 2,478 445 2,923 2,484 439 2,983 2,490 493
Total Mining Plant in
Service. . . . . . . $84,742 $51,881 $32,861 $83,976 $51,638 $32,338 $84,004 $52,091 $31,913
</TABLE>
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CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING OPERATIONS
FOR THE QUARTER ENDED DECEMBER 31, 1993
In November 1993, the Company laid off 131 employees due to reduced
production requirements as the Muskingum River Plant prepares to meet Phase I
emission standards of the Clean Air Act Amendments of 1990.
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<TABLE>
CENTRAL OHIO COAL COMPANY
STATEMENTS OF COST OF OPERATION
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
Three
Months
October November December Ended
1993 1993 1993 12/31/93
(in thousands)
<S> <C> <C> <C> <C>
Direct Labor-UMW* . . . . . . . . . . . . . . . . $ 213 $ 201 $ 158 $ 572
Indirect Labor-UMW* . . . . . . . . . . . . . . . 994 707 1,107 2,808
Benefits-UMW* . . . . . . . . . . . . . . . . . . 1,067 849 733 2,649
Salaries and Benefits-Nonunion. . . . . . . . . . 646 614 1,449 2,709
Operating Supplies. . . . . . . . . . . . . . . . 1,129 865 688 2,682
Repair Parts and Materials. . . . . . . . . . . . 912 612 816 2,340
Electricity and Other Utilities . . . . . . . . . 759 280 335 1,374
Outside Services-Maintenance, Haulage
and Reclamation . . . . . . . . . . . . . . . . 185 300 369 854
Taxes Other Than Income Taxes** . . . . . . . . . 244 213 183 640
Rental of Equipment . . . . . . . . . . . . . . . 1,536 1,512 1,491 4,539
Depreciation, Depletion and Amortization. . . . . 169 164 159 492
Coal Contractor Billings. . . . . . . . . . . . . 219 191 253 663
Mining Cost Normalization***. . . . . . . . . . . 4,171 3,381 - 7,552
Reclamation Cost - Net. . . . . . . . . . . . . . (442) 46 (330) (726)
Other Production Costs. . . . . . . . . . . . . . (118) 526 171 579
Subtotal. . . . . . . . . . . . . . . . . . . . . 11,684 10,461 7,582 29,727
Transfers of Production Costs (to)/from
Coal Inventory. . . . . . . . . . . . . . . . . (202) (779) (198) (1,179)
Total . . . . . . . . . . . . . . . . . $11,482 $ 9,682 $7,384 $28,548
* United Mine Workers of America.
** Excludes FICA, Federal Unemployment and State Unemployment. These costs are reflected
in employee benefits.
*** Represents the deferral/accrual required to establish a selling price based on
forecasted results for the remainder of the year. The amount of mining cost
normalization is established on an "overall" company basis (i.e., not itemized) and
is eliminated by year-end.
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CENTRAL OHIO COAL COMPANY
SCHEDULE OF CHANGES IN COAL INVENTORY
BY MONTH, FOR THE QUARTER ENDED DECEMBER 31, 1993
<CAPTION>
October November December
1993 1993 1993
(in thousands)
<S> <C> <C> <C>
Coal Stockpile:*
Ending Inventory. . . . . . . . . . . . . . . $84 $79 $ 28
Beginning Inventory . . . . . . . . . . . . . 58 84 79
Increase (Decrease) in Coal
Stockpile Inventory . . . . . . . . . . . . $26 $(5) $(51)
Coal in Process:**
Ending Inventory. . . . . . . . . . . . . . . $1,832 $2,616 $2,865
Beginning Inventory . . . . . . . . . . . . . 1,656 1,832 2,616
Increase in Coal in Process Inventory . . . . $ 176 $ 784 $ 249
* The production level of coal has been greater than the demand for coal at Muskingum
River Plant, which has created a raw coal stockpile.
** In connection with its strip-mining operations, the Company defers, as an element of
inventory, costs of removing over-burden. Such deferred costs will be charged to
expense as the uncovered coal is mined and sold.
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CENTRAL OHIO COAL COMPANY
CONSTRUCTION EXPENDITURE BUDGET - 1994*
<CAPTION>
Description Budgeted Amount
<S> <C>
Mine Plant Blanket $343
Brennon Fork & Horse Run Rd Upgrade 325
Powerline Construction 256
Total $924
</TABLE>
* This budget does not include any possible lease transactions.
